Question
Consider the hypothetical listing below for 10-year Treasury note futures on the Chicago Board of Trade. One futures contract for Treasury notes =$100,000 face value
Consider the hypothetical listing below for 10-year Treasury note futures on the Chicago Board of Trade. One futures contract for Treasury notes =$100,000 face value of 10-year 6% notes.It does not specify the current date, I suppose its on December 2018) a. If today you bought two contracts expiring in December 2018, how much would you pay? b. What does the OpenInt on a futures contract mean? What is the OpenInt on the contract expiring in March 2019?
c. If you were a speculator who expected interest rates to fall, would you buy or sell these futures contracts? Briefly explain.
d. Suppose you sell the December futures contract, and one day later, the Chicago Board of Trade informs you that it has credited funds to your margin account. What happened to interest rates during that day? Briefly explain.
Month Last Chg Open High Low Volume OpenInt
Dec 2018 130.500 0.301 130.266 130.752 130.266 564,322 2,380,328
Mar 2019 129.250 0.301 129.000 129.500 128.950 4,325 118,728
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